Russia allows central bank, top lender Sberbank to down drones

BY Reuters | ECONOMIC | 06:23 AM EDT

May 27 (Reuters) - Russia has passed a law allowing its central bank and other financial institutions to operate their own defence systems and arm staff to repel drone attacks, a document published by the lower house of parliament showed.?

Ukraine struck the central bank's office in Sevastopol in Crimea with a missile on Wednesday, local governor Mikhail Razvozhaev said, alleging that it was a British-made Storm Shadow missile. He added that the building was on fire.

Ukraine has been regularly striking Russia with drones since Moscow launched the war in February 2022, with energy infrastructure frequently targeted as Kyiv aims to deprive Moscow of revenues in order to bring the conflict to an end.?

Drone defence systems could be located next to the central bank, the country's biggest bank Sberbank, and the Russian Cash Collection Association. Staff at those institutions would be permitted to be armed.?

The institutions would handle the cost of drone defence themselves, Anatoly Aksakov, the head of the financial committee in Russia's lower house of parliament, the State Duma, was quoted as saying by the RBC news outlet.?

The attack on the central bank's office in Sevastopol was the first on a major central bank office since the start of the war. There were no reported attacks on major Sberbank offices.

On Tuesday, Alexander Shokhin, head of Russia's most powerful business lobby, told President Vladimir Putin companies are ready to finance the purchase of heavier weapons and electronic systems to defend their infrastructure from drone attacks.?

(Reporting by Reuters, Writing by Jekater?na Golubkova in Tokyo and Gleb Bryanski in Moscow; Editing by Lincoln Feast and Gus Trompiz)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article